In the morning kickstart video, I spoke of the upside potential from a technical perspective for the EURUSD. The move was based off the rebound, and move back above the swing area between 1.0631 and 1.0635. Here is what I said on the trade idea:
What happened?
- The price of the EURUSD stayed above the swing area at 1.0631- 1.0635.
- The price was able to extend above the 1.0644 and 1.0655 levels.
- The price moved up to test the key 100-hour moving average 1.0674.
Sellers leaned against the 100-hour moving average at 1.0674 on the test (buyers against 1.0631 – 35 took profit at 1.0674 on the corrective rebound), and have now rotated the price back down toward the 1.0655 level.
What next?
The battle is now on as support held at 1.0610 (the 38.2% retracement of the move up from the September 2022 low) and resistance held (the 100 hour moving average).
If the buyers are to take more control they need to get back above the 100-hour moving average. If done, a rotation toward the 200-hour moving average 1.0695 would be eyed.
Conversely, a move back below 1.0655 and 1.06443 would have traders looking once again at the 1.0631 – 35 area followed by the aforementioned 38.2% retracement of the move up from the September 2022 low at 1.0610.
This article was written by Greg Michalowski at www.forexlive.com. Source